XPeng stock price has surged this year. It has jumped by over 40% in 2025, making it the best-performing electric vehicle stock. This rally has brought its market cap to over $16 billion. So, is XPEV a good EV stock to buy this year?
Why the XPeng stock price is soaring
XPeng is one of the biggest electric vehicle companies in China. It is an EV brand that sells several brands that have become highly popular in China. Most importantly, XPeng has received substantial investments from Volkswagen, one of the biggest automakers globally.
XPeng’s business has grown substantially in the past few years. Its annual revenue jumped from over $333 million in 2018 to $4.32 billion in 2023. According to SeekingAlpha, its trailing twelve-month revenue was over $5.3 billion.
This growth happened in a relatively difficult period time for the electric vehicle industry as competition rose and protectionist policies in the US and Europe escalated. Competition has come from other companies like Tesla, BYD, Nio, and Huawei. Countries like the United States and those in Europe have imposed substantial tariffs on Chinese EVs.
XPeng’s business has continued to do well, indicating demand is still there. Data released this week showed that its vehicle deliveries jumped sharply in January. It sold 30,350 vehicles, up by 268% from the same period last year.
It was the third month that the firm sold over 30,000 vehicles, a sign that demand continued even as the Chinese economy slowed. This also happened as it dished discounts and expanded its store footprint in the country.
The most recent earnings report revealed that XPeng delivered over 46,500 vehicles in the third quarter. Its revenue rose by 18.4% to $1.44 billion.
Most notably, the company moved into positive gross margins, a sign that it is starting to focus on profits. Its gross margin rose to 15.3%, which explains why the net loss improved to $0.26 billion.
Read more: XPeng stock price analysis: technicals point to a 40% jump
Is XPEV stock a good buy?
There are a few reasons why the XPeng stock is a good investment. First, the company is ramping up vehicle production, a move that it will continue doing well in the longer term. This growth will likely come from international markets. While countries have imposed tariffs, its scale in China will substantially lower costs and make it compete in places like Europe and Asia..
Second, analysts are optimistic that the XPeng revenue growth will continue. The average estimate is that XPeng’s revenue grew by 23% in the fourth quarter, bringing the annual rate to 35%. XPeng’s first-quarter guidance will be a 116% revenue growth.
Further, there are signs that XPeng is an undervalued EV stock compared to some of its peers. It may maintain this valuation as long as it continues growing its business and reducing its losses.
Additionally, its partnership with Volkswagen is a positive thing as it will help it gain a foothold in the vast European market. Just recently, the two firms announced that they would build one of the biggest charging networks in China.
XPeng stock price analysis
XPEV stock by TradingView
The weekly chart shows that the XPEV share price bottomed at $6.90, where it struggled to move below since 2023. It then bounced back and moved to the current $17.07.
XPeng stock has moved above the 50-week Exponential Moving Average (EMA), and is nearing the key resistance at $23.6, its highest level in July 2023. This is a notable level since it is above the 23.6% Fibonacci Retracement level.
Therefore, the XPeng stock price will likely keep rising as bulls target that level. A break above it wil bring the 50% retracement point to view. That price is about 140% above the current point.
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